NOTE 14 - FEDERAL AND STATE INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2012

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of income tax expense (benefit) from continuing operations for the years ended December 29, 2012 and December 31, 2011 were as follows:

	2012		2011
	(dollars in thousands)
Current
Federal	$	—	$	824
State		193		573
		193		1,397
Deferred
Federal		6,808		(2,165	)
State		—		(63	)
		6,808		(2,228	)
Total tax provision	$	7,001	$	(831	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of the deferred tax asset (liability) consisted of the following at December 29, 2012 and December 31, 2011:

	2012			2011
	(dollars in thousands)
Deferred tax asset
Allowance for doubtful accounts	$	926		$	688
Net operating loss carry-forward		7,197			1,204
Accruals not yet deductible for tax purposes		2,642			2,962
Goodwill		5,582			—
Stock options		1,058			1,054
Deferred tax assets		17,405			5,908
Less: Valuation allowance		(17,356	)		(461	)
Deferred tax assets		49			5,447
Deferred tax liabilities
Depreciation		(49	)		(150	)
Goodwill		—			(102	)
Deferred tax liability		(49	)		(252	)
Deferred tax asset, net	$	—		$	5,195

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following is a reconciliation of expected to actual income tax expense from continuing operations for the years ended December 29, 2012 and December 31, 2011:

	2012			2011
	(dollars in thousands)
Federal income tax benefit at 35% for 2012 and 2011	$	(8,072	)	$	(1,717	)
State and foreign taxes, net of federal income tax effect		127			318
Nondeductible expenses		97			95
Stock compensation expense		77			38
Prior year provision to return		(2,123	)		417
Change in valuation allowance		16,895			—
Other, net		—			18
Total tax provision	$	7,001		$	(831	)